Child saving account/trust deposit help please

Totallylost2024

Hello I was wondering if anyone could give me some advice.  Following the death of my ex partner my son will be receiving an insurance payout which is quite sizeable.  A discretionary trust has been set up for him (he is 7 and autistic) with myself (his mum) and my brother as trustees.  My questions surround bank accounts and tax.  At the moment the money is going to be paid into my bank account as I haven’t found an option of a bank that will open a Trust bank account.  I also don’t want to leave all the money in one account.  I was aiming to put it in a few higher interest savings accounts and just use the interest, however atm I don’t see any way around it other than opening the accounts in my name. Does anyone have any thoughts or advice on this please?

retiredbanker1

I don't think you can open an account in trust in your sole name.

What exactly is the wording of the trust deed?

As an example look at what Cater Allen can provide for an account to hold the initial funds in.

As for investing/savings I would suggest looking for an independent financial advisor who can take you through the options.

High street banks have stopped opening trust accounts in my experience

Albermarle

It is a common problem, many places have stopped offerring Trust accounts.
Skipton Building society is often mentioned as a provider offering them still.
They also have savings accounts as well.

xylophone

https://www.gov.uk/trusts-taxes/trusts-for-vulnerable-people

Metro Bank still offers accounts for Trusts.

https://www.metrobankonline.co.uk/business/sector-services/products/trustee-banking/

Skipton BS offers Trust accounts.

Buckinghamshire BS offers accounts for Trusts.

https://www.bucksbs.co.uk/savings/trusts/

Bigwheels1111

My friends son is non verbal autistic. 
He would like to set up a will etc.
This is proving problematic.
He does not expect his son to ever work etc.
So any property or funds left to him would be null and void as such.
As his son is likely to be on benefits all his life.
Any inheritance would affect his benefits.
Get the money in one hand and it’s taken away by the other.

My brother’s son’s autism has got better over time, the obsession part and communication skills.
In the last 3 years, he got a job in computers ( next pay rise will put him in the higher rate tax bracket )
A girlfriend ( amazing what a girl does to boys ) 😜 She is on the spectrum also.
Passed his driving test, drives like and old lady 😆

It’s a waiting game, prepare for the worst and hope for the best.

Albermarle

My friends son is non verbal autistic. 
He would like to set up a will etc.
This is proving problematic.
He would like to set up a will etc.
This is proving problematic.

The normal advice in this situation, is to leave money in a will via a trust.

There is a category of trust called a disabled persons trust, that has advantages over a normal trust, although there are criteria of defining what disabled means in this context.

The trust can be set up in advance, or by the executor of the will after death.

As the money is in trust it will not have any effect on the persons benefit entitlement.

Of course you have to find someone suitable and to agree to be the Trustee ( ideally more than one person, but otherwise should be pretty straightforward, and a standard item for any solicitor setting up a will.

Bigwheels1111

Albermarle said:

My friends son is non verbal autistic. 
He would like to set up a will etc.
This is proving problematic.
He would like to set up a will etc.
This is proving problematic.

The normal advice in this situation, is to leave money in a will via a trust.

There is a category of trust called a disabled persons trust, that has advantages over a normal trust, although there are criteria of defining what disabled means in this context.

The trust can be set up in advance, or by the executor of the will after death.

As the money is in trust it will not have any effect on the persons benefit entitlement.

Of course you have to find someone suitable and to agree to be the Trustee ( ideally more than one person, but otherwise should be pretty straightforward, and a standard item for any solicitor setting up a will.

Thanks, will pass that info on.

xylophone

See https://www.mencap.org.uk/advice-and-support/wills-and-trusts-service?gad_source=1&gclid=EAIaIQobChMIov-KoaCohAMVcpJQBh22VQvLEAAYASAAEgL9ZPD_BwE